Im a bit confused with which are the differences between a limited liability partnership (LLP) and a private limited company (ltd). Can anybody bring us some light on this?.
the first is a partnership whereas the second is a company
Does that help?
Limited Liability Partnership:
Brings in the best of both worlds.
From Partnership it derives : Simplified legal procedures, tax payable as personal Income tax
From Company it derives : The limited liability status
to sum up, LLP is created to allow people to create an entity quickly with relatively less legal procedures unlike the company and at the same time having the limited liability for the members ( please do remember in LLP we have to use the term members not partners).
Mostly used by service oriented businesses having more risk ( accounting firms)
LTD : Private limited company
Firstly its a company, hence need to follow the requirements of CA 2006 in setting up, thus making is more complicated in setting it up. It has limited liability but it has to pay corporate income tax ( as a company is a separate legal entity )
Hope that helps?
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